Managing Organizational Change

A Multiple Perspective Approach

Third Edition

Chapter 4
What to Change?
A Diagnosis
Approach

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 Learning Objectives

• Diagnostic Models
• Images of Managing Change
• Advantages of Diagnostic Models
• Diagnostic Models:
– Organization
– Strategy
– Readiness for Change

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 Diagnostic Models

• The image of the change manager has

an impact on the types of models that
may be used.
• The different images highlight the range
of reasons why models like these may
be utilized – they illustrate the
numerous ways change can be
interpreted.

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Images of Managing Change (1 of 2)

Images Diagnostic Models

Director Using diagnostic models to build up your own knowledge
base and confidence about what needs to change by using
models that specify relationships among variables and
pinpoint where change is needed when things are not
going well.
Navigator You will find the diagnostic models attractive; models are
ways of “mapping” the environment they describe.
Caretaker You will be less convinced of the capacity of the diagnostic
models to support radical change, but several of them
(see, e.g., PESTLE and scenario planning) provide insights
into the trends in the external environment that you will
have to take into account.
Coach You will focus on the diagnostic models that highlight the
goals being sought and the competencies needed to attain
them

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Images of Managing Change (2 of 2)

Images Diagnostic Models

Interpreter You will be attracted to the diagnostic models that

emphasize images, framing, and cognitive maps
Nurturer Having an interest in emergent strategy, you may remain
unconvinced as to the value of such diagnostic models.

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Advantages of Diagnostic Models

• Simplify a complex situation.

• Identify priorities for attention.
• Highlight interconnectedness of various
organizational properties (e.g., strategy
and structure).
• Provide a common “language” with
which to discuss organizational
characteristics.
• Provide a guide to the sequence of
actions to take in a change situation.
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 Diagnostic Models: Organization 1

• Six-Box Organizational Model

– The key focus here is on six variables – purpose,
structure, rewards, helpful mechanisms, relationship
and leadership. This model is useful to maintain
awareness of all areas for consideration even though
one variable may be identified as the main area for
attention.
• 7-S Framework
– The 7-S framework: this focuses on seven key
components that affect organizational effectiveness
– structure, systems, style, staff, skills, strategy and
superordinate goals. The interconnectedness of
these variables is vital to the success of change.

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 Diagnostic Models: Organization 2

• Star Model
– An organization is effective when the five components
of organizational design – strategy, structure,
processes and later capability, reward systems and
people practices – are in alignment.
• Four Frame Model
– This offers four frames for the managers to
conceptualize how the organization operates. These
frames are structural, human resource, political and
symbolic frames.

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 Diagnostic Models: Strategy 1

• Gap Analysis
– This is a model used for reviewing the organization’s
current situation relative to the situation in which it
wishes to be (the difference being ‘the gap’).
• PESTLE Framework
– Analyses the external environment in terms of six
factors – political, economic, social, technological,
legal and environmental.
• Scenario Planning
– Creating stories of multiple possible futures that an
organization might face as a basis for considering
potential actions if various futures emerge.

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Diagnostic Models: Strategy 2 (1 of 2)

• Elements of Strategy
– Five elements of strategy are considered mutually
reinforcing – arenas, vehicles, differentiators, staging
and economic logic. Any misalignment of these
signifies the need for change.
• Strategic Inventory
– Identifies managers’ strategic assumptions and their
consistency with the business environment. This
determines whether strategy should be a focal point
for change.

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Diagnostic Models: Strategy 2 (2 of 2)

• Cultural Web
– Provides a mapping of an organization’s culture
through a focus on seven elements – paradigm,
rituals and routines, stories, symbols, control
systems, power structures, and organizational
structure.

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Diagnostic Models: Readiness for Change 1

• The Receptive Organization

– Asks a range of questions about the pressure for
change, shared vision, level of trust, will to act,
available resources, allocation of accountability,
etc.
• Absorptive Capacity
– Focuses on the ability of an organization to find,
assimilate and apply new knowledge
• The Innovative Organisation
– Identifies characteristics associated with
organizations that are able to be innovative and
creative.

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Diagnostic Models: Readiness for Change 2

• Force-Field Analysis
– Identifies factors that are driving forces for
change as well as restraining forces.
• Individual Readiness
– Focuses on individual and organizational
characteristics that predispose an individual to
being ready to change.
• Stakeholder Analysis
– Identifies those who are likely to be affected by
an organizational change (‘stakeholders’), their
expected gains and losses, and their capacity to
support or block a change.
– Use of Power-Interest Matrix
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